Past changes

For loans first disbursed on or after July 1, 2015 and prior to July 1, 2016, the fixed interest rates will be:

Direct Subsidized and Unsubsidized Loans - 4.29%

Direct Parent PLUS loans - 6.84%

The interest rate was determined using the formula established in the Bipartisan Student Loan Certainty Act of 2013 and based on the Treasury Department's 10-year Treasury note index of 2.24%.

New York State announces two new programs - May 2015

The Get on Your Feet Loan Forgiveness Program allows New York residents who graduate from a college located in New York State and continue to live in the state to pay nothing on their federal student loans for the first two years out of school if their income is not high enough. If you are graduating in 2014-15 or after, the program begins in early June. Check hesc.ny.gov for more information.

The New York State Achievement and Investment in Merit Scholarship (NY-AIMS) provides high school graduates who excel academically with merit-based scholarships to support their cost of attendance at any college in NYS. Five thousand awards of $500 each will be granted annually in 2015-16 and 2016-17. Application period will open mid- to late May. Check hesc.ny.gov for more information.

Because sequestration is still in effect, the direct loan origination fees are rising.

How this affects you: Direct loans with the first actual disbursement on or after December 1, 2013 will have increased origination fees. Stafford loan origination fees will rise from 1.072% to 1.073% and PLUS origination fees from 4.288% to 4.292%.

Direct Federal Loan Interest Rates Increase - July 2014

Using the formula established in the Bipartisan Student Loan Certainty Act of 2013 and based on the Treasury Department's 10-year Treasury note auction on May 7, 2014, interest rates will increase for all Direct loans.

How this affects you: Undergraduate subsidized and unsubsidized loans will increase to 4.66% interest; Parent PLUS loans will increase to 7.21%. This will affect loans first disbursed between July 1, 2014 and June 30, 2015 only.